In class the Harvard “Operations Management Simulation: Inve…
In class the Harvard “Operations Management Simulation: Inventory Basics” was played. Suppose you played another round of the simulation with the parameters given below. Jan Feb Mar Apr May June Jul Aug Sept Oct Nov Dec Forecasted Demand 60 60 60 60 60 60 60 60 60 60 60 60 Starting Inventory 0 Order Quantity ? ? ? ? ? ? ? ? ? ? ? ? Given: Inventory value = $40 per unit Carrying cost of inventory, annually = 25% Ordering cost = $300 per order Lead time = 1 month (i.e., an order placed in January arrives in February) (Part A)Find the Order Quantity that minimizes total cost while avoiding stock-outs. Round your answer to the nearest whole number. (Part B)Given your answer in Part A, how many orders should be placed in the 12 month period of the simulation? Round your answer to the nearest whole number.
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